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This paper is part of the Compendium of Evidence on the Effectiveness of Innovation Policy Intervention. It examines the evidence on innovation and training and skills policies. Training and skills policies are usually part of a wider policy effort that seeks to improve economic growth and employment participation rather than being specifically designed and implemented with the goal of strengthening innovation capabilities at the firm or sector levels. Although the articulation of linkages between skills and innovation can be identified in principle, the mechanisms through which they interact in the real- world economy remain somewhat opaque. This paper examines some impacts of training policy on innovation, offers a relevant conceptual background for understanding inter-linkages between components of skills systems and innovation and considers the impact of some policies aimed at enhancing medium and high level skills.

The Effects of Policies for Training Skills on Improving Innovation Capabilitites in Firms